Hibiya Engineering : For the Third Quarter of Fiscal Year Ended March 31, 2022(Japan GAAP) Summary of Consolidated Financial Results

February 3, 2022

Summary of Consolidated Financial Results

For the Third Quarter of Fiscal Year Ending March 31, 2022 [Japan GAAP]

Company: Hibiya Engineering, Ltd.

Stock exchange listing: Tokyo Stock Exchange (First Section)

Stock code: 1982

URL: http://www.hibiya-eng.co.jp/English

Representative Director: Nagahiro Kuroda, President and CEO

Contact: Mitsuyoshi Suwa, Senior Executive Officer, Manager of IR and PR Office, Administration Division

Tel: [phone]
Date of filing of quarterly securities report:	February 3, 2022 (tentative)
Date of commencement of dividend payment:	-
Supplementary explanatory documents:	No
Earnings presentation:	No
	(Yen in millions, rounded down)

1. Financial results for the first three quarters of the fiscal year ending March 2022 (April 1, 2021 - December 31, 2021)

(1) Result of operations (Consolidated, year-to-date)			(Percentage figures represent year on year changes)
	Net sales			Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Million yen		%	Million yen	%	Million yen	%		Million yen	%
First three quarters ended Dec. 2021	51,846		5.9		4,383		121.8	4,864	91.8		3,524	108.0
First three quarters ended Dec. 2020	48,955		4.1		1,976		-	2,535	361.8		1,694	182.5
Note: Comprehensive income: First three quarters of FY3/2022:	2,949 million yen [-19.3%]
First three quarters of FY3/2021:	3,656 million yen [-%]
	Earnings per share		Earnings per share fully diluted
					Yen						Yen
First three quarters ended Dec. 2021				147.88				147.26
First three quarters ended Dec. 2020					71.00					70.64

1. Financial Position (Consolidated)

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of December 31, 2021	81,424	63,197	75.6	2,601.03
As of March 31, 2021	86,138	62,593	70.9	2,556.56

Notes: Shareholders' equity
As of December 31, 2021:	61,594 million yen	As of March 31, 2021: 61,049 million yen
2. Dividends
				Dividend per share
		End of 1Q	End of 2Q			End of 3Q		End of FY		Full year
		Yen	Yen			Yen		Yen		Yen
Fiscal year ended March 2021		-	40.00			-		40.00		80.00
Fiscal year ending March 2022		-	40.00			-
Fiscal year ending March 2022 (estimate)							40.00		80.00
Note: Change in the estimation of dividend from the latest announcement: No

3. Forecast for the fiscal year ending March 2022 (Consolidated, April 1, 2021 to March 31, 2022)

(Percentage figures represent year on year changes)

								Profit attributable	Earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
								parent
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Yen
Full year	77,000		5.3	5,000	25.1	5,500	19.7	4,000		30.0	168.91

Note: Change in the forecast from the latest announcement: Yes

• Notes
• 1. Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): No
  2. Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: No
  3. Changes in accounting principles and estimates, and retrospective restatement
  4. 1. Changes due to revision of accounting standards: Yes
     2. Changes other than in (a): No
     3. Changes in accounting estimates: No
     4. Retrospective restatement: No
  5. Number of shares outstanding (common stock)
  6. 1. Shares outstanding (including treasury shares)

As of December 31, 2021:	25,006,321	As of March 31, 2021:	25,006,321
(b) Treasury shares
As of December 31, 2021:	1,325,651	As of March 31, 2021:	1,126,701
(c) Average number of shares (first three quarters)
Period ended December 31, 2021:	23,830,925	Period ended December 31, 2020:	23,858,614

Forward-looking statements, important Notes, etc.

This report is exempt from the audit review by certified public accountant or audit firm.

These materials contain forward-looking statements that are based on information available to management as of the date of this report. Actual results may be materially different from the above forecasts for a number of reasons.

This is an English translation of the captioned report. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the report for complete information.

Index for Supplementary Information
1. Results of Operations..............................................................................................................................	2
(1)	Overview of consolidated business performance ..................................................................................................	2
(2)	Overview of financial condition..............................................................................................................................	2
(3)	Forecast for fiscal year ending in March 2022.......................................................................................................	2
2. Quarterly Consolidated Financial Statements and Important Notes..................................................	3
(1)	Quarterly consolidated balance sheet ...................................................................................................................	3
(2)	Quarterly consolidated statements of income and consolidated statements of comprehensive income ...............	5
(Quarterly consolidated statements of income)
	(For the first three quarters) ..................................................................................................................................	5
(Quarterly consolidated statements of comprehensive income)
	(For the first three quarters) ..................................................................................................................................	6
(3)	Notes to quarterly consolidated financial statements ............................................................................................	7
(Notes on going concern assumptions)....................................................................................................................	7
(Notes on significant change in shareholders' equity) ..............................................................................................	7

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1. Results of Operations

1. Overview of consolidated business performance
   In the first three quarters of the fiscal year ending March 2022, the Japanese economy remained challenging due to economic restrictions because of resurgent increases in COVID-19 cases in Japan and other countries and other factors. Although those situations have been eased gradually because of the Japanese government's measures to support the economy and progress with vaccinations and there were signs of recovery in economic activity, the economic outlook is still uncertain because of the semiconductor shortage, the rising cost of raw materials and other sources of concern.
   In Japan's construction industry, there is a large volume of public works expenditures, but recovery in capital investment seems to have stalled and competition for orders is heating up.
   Based on the Hibiya Engineering Group's Seventh Medium-term Management Plan, many activities are under way including to capture more orders in the decarbonization and energy conservation business through cooperation with alliance partners and to promote the digital transformation for more efficient job site management. For the group's workforce, there are measures for encouraging employees to stay healthy and take paid leave and for reforms involving working styles and lifestyles. There are also efforts to achieve more progress with sales and technology strategies and revise the group's organizational structure to strengthen governance and increase corporate value. For initiatives for protection against COVIC-19, group companies are continuing to use staggered working hours to avoid peak commuting times, encourage employees to work from home and take thorough measures to prevent infections at workplaces.
   As a result of the above actions and reduced impact of the COVID-19 pandemic on sales activities, orders received in the first three quarters were 54,775 million yen, up 8.1% from one year earlier.
   Sales increased 5.9% to 51,846 million yen mainly because the projects carried over from previous fiscal year as well as orders received in current fiscal year have progressed smoothly.
   Earnings were higher not only because of the increase in sales, but also because of an improvement in profit margin with cost reduction activities, an improvement in the efficiency of construction work at large projects and other reasons. Operating profit was up 121.8% to 4,383 million yen and ordinary profit increased 91.8% to 4,864 million yen. Profit attributable to owners of parent increased 108.0% to 3,524 million yen.
2. Overview of financial condition
   Assets
   Total assets decreased 4,713 million yen from the end of the previous fiscal year to 81,424 million yen. Current assets declined 3,642 million yen to 59,246 million yen, and noncurrent assets decreased 1,071 million yen to 22,178 million yen. The major reason for the decrease in assets is a decline in cash and deposits of 4,604 million yen.
   Liabilities
   Liabilities decreased 5,317 million yen from the end of the previous fiscal year to 18,227 million yen. The main reason is a decrease of 3,987 million yen in notes payable, accounts payable for construction contracts and other.
   Net assets
   Net assets were 63,197 million yen at the end of the third quarter mainly due to an increase of 1,571 million yen in retained earnings.
3. Forecast for fiscal year ending in March 2022
   The forecast for consolidated results of operations, announced on November 5, 2021, has been revised based on the recent results of operations and other reasons. Details of this revision are in "Notice of Revision of the Consolidated Financial Forecast for the Fiscal Year ending March 2022" that was announced today (February 3,
   2022).

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2. Quarterly Consolidated Financial Statements and Important Notes

1. Quarterly consolidated balance sheet

			(Million yen)
		Fiscal year ended March 2021	Third quarter ended Dec. 2021
		(As of March 31, 2021)	(As of December 31, 2021)
ASSETS
Current assets
Cash and deposits	29,399	24,795
Notes receivable, accounts receivable from
completed construction contracts and other	26,340	25,316
Securities	5,501	6,000
Costs on construction contracts in progress	810	1,204
Other	840	1,933
Allowance for doubtful accounts	(4)	(3)
Total current assets	62,888	59,246
Noncurrent assets
Property, plant and equipment	590	595
Intangible assets	182	139
Investments and other assets
Investment securities	17,751	16,649
Other	5,165	5,132
Allowance for doubtful accounts	(441)	(338)
Total investments and other assets	22,476	21,443
Total noncurrent assets	23,249	22,178
Total assets		86,138	81,424

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